BSE Sensex and Nifty 50 erased all the morning gains immediately after the RBI announced to maintain the repo price unchanged on Friday. BSE Sensex ended 132 points down at 52,one hundred, whilst the Nifty 50 index ended 20 points down at 15,670. During intraday, Sensex hit a day’s higher of 52,389.02, whilst Nifty 50 surged to a fresh record higher of 15,733.60. Broader markets outperformed the equity markets. BSE Midcap index completed at 22,511.49 and Smallcap index at 24,262. Both the indices hit a fresh 52-week higher throughout intraday bargains. India VIX, volatility index, was up 1.23 per cent and ended at 15.94 levels. RBI’s monetary policy committee (MPC) revised down the development projection to 9.5 per cent from 10.5 per cent for the existing monetary year and revised the inflation projection upward to 5.1 per cent.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Equity markets in India continued their upward march amid enhancing circumstances relating to the second Covid wave and expectation of gradual ease down in lockdown restrictions. This week saw each Sensex and Nifty generating a record closing higher .On 3rd June, Nifty 50 and Sensex hit a fresh record closing higher of 15,690 and 52,232, respectively. Midcap and Smallcap indices also moved in upward path this week. The Nifty-50 gained 1.4%, Nifty MidCap one hundred Index gained 3.2% and the Nifty Small Cap one hundred Index gained 2.5% throughout the week. FPIs have been net purchasers in Indian equities in June 2021. During June’21 to date, they have brought to the tune of Rs 1,550 crore as markets began pricing in normalization of small business situations amid gradual dilution of restrictions on activities by a variety of state governments, as day-to-day new Covid-19 situations continue to stay low. After moving beneath 1.58% last week, the yield on the benchmark 10-Year Treasury note rose to 1.63%. Expectation of typical monsoon, accommodative stance by RBI, decline in fresh Covid situations in India, gradual easing of lockdown restriction and positive worldwide cues would probably lend help to the marketplace in the close to term.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index has closed a handful of points beneath 15700 but the trend nevertheless remains positive and we must head to 15900-16000. The Nifty has a number of supports at 15600, 15400 and 15300. The most critical of these is the 15300 level which wants to be respected on a closing basis. Intra day dips must be utilized to accumulate acquire positions on the index for greater targets.
Binod Modi, Head Strategy, Reliance Securities
Benchmark Nifty corrected marginally led by contraction in financials, specifically in banks. Further, weak worldwide cues also weighed on sentiments. Notably, a moderate raise in inflation forecast by the RBI in its policy meeting outcome today led G-sec yields escalating by ~3bps, which resulted in profit booking in banks. Notably, Nifty recorded weekly get of 1.5% and added Rs 6 trillion in investors’ wealthy throughout the week. MPC meeting outcome today was largely in-line with expectations as RBI, in addition to keeping status quo about policy prices, focused upon guaranteeing adequate liquidity in the program and supported MSMEs and corporate hit in second wave. Investors will continue to focus on trajectory of day-to-day caseload and vaccination ramp up in the nation in the close to term. While domestic equites continue to look excellent, investors need to focus on high-quality stocks with robust earnings visibility and margins of security. In our view, sectors deemed to be big beneficiaries of capex revival are probably to be back in focus in coming weeks.
Mohit Nigam, Head PMS, Hem Securities
Nifty 50 closed at 15,670.25 immediately after a volatile trade session and decent recovery in later hours. Banks have been hit the most post RBI’s meeting outcome whilst auto, metals and power have been slightly greater. Broader markets continue to get momentum & outperform benchmarks. Housing finance counters have been on a run post yesterday’s surge on announcement of new rental law whilst on the other hand entertainment stocks also witnessed some respite post RBI’s meeting outcome. After witnessing late intra-day recovery from losses, Nifty appears to preserve its momentum in upward path and greater levels to look out shall be 15,800 and 16,000. Key help levels for the close to term stay at 15,500 and 15,300.
Nirali Shah, Head of Equity Research, Samco Securities
The fourth quarter outcome season pace has been fairly slower this fiscal wherein fairly fewer organizations from various sectors have announced their earnings till now. The coming weeks could see a quantity of PSU heavyweights such as SAIL, NTPC, Coal India and so on. in focus as they come out with their numbers. Further, crucial developments on the disinvestment story could also maintain the PSU stocks on radar. Investors must as a result spot trades cautiously on PSUs to buffer from any unforeseen shocks owing to such announcements. Meanwhile, Indian markets could continue to mimic the movement across worldwide commodities and equities.